>> it's debate day and two new items, a tape from the president on race and a new gaffe from joe biden. this is getting hot. good morning, everyone. at taper circus, candidate obama said katrina victims didn't get the same treatment as victims of others, he was speaking to a generally black audience and demands more-- >> and vice-president biden says the middle class has been buried in the last four years, tries to walk it back, saying they were buried by policies romney and ryan supported. a mini ipad on the way. so watch out amazon.

all right. 12 hours to the debate, but "varney & company" is about to begin.

>> wednesday, october 3rd. two new videos we're going to show you this morning. and first, president obama when he was still a candidate for the presidency back in '07. he's speaking to mostly black audience questioning whether katrina victims were given the same treatment as victims of other disasters. >> when 9/11 happened in new york city, they waved the-- said this is too serious a problem, we can't expect new york city to rebuild on its own, forget that, that dollar you've got to put in. here is $10 and that's the right thing to do. when hurricane andrew struck in florida, people said, look at this devastation. we don't expect to you come up with your money here, here is the money to rebuild. we're not going to wait for to

you scratch it together because you're part of the american family. what's happening down in new orleans? where is your dollar? where is your stafford act money? tells me-- have been taken out. how they

justify raising taxes on the middle class, buried for the last four years. stuart: that's the back drop of the debate. and this is the latest poll, president obama with a 3 point lead, that's down from the 5 point lead about ten days ago, two weeks ago, we put that entire tape of president obama on our facebook page, please check it out and tell us what you think and we'll read comments in the next hour. vice-president joe biden says the middle class has been buried the past four years, a clear gaffe in my opinion. is he right? i say, yes, he is. we get a democratic congressman's response in, and we'll bring you the opening bell as well. when we got married.

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osteorosis, d some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking it. with copd, i thought i'd miss our family tradition. now symbicort significantly improves my lung function, starting within 5 minutes. and that makes a difference in my breathing. today, we're ready for whatever swims our way. ask your doctor about symbicort. i got my first prescription free. or click to learn more. [ male announcer ] if you can't afford your medicatio astrazeneca may be able to help. >> adp came out with the number of new private sector jobs in september earlier today. the number was 162,000, not a very strong number and it suggests that the big number, which comes out on friday, that would be the unemployment rate and a number of new jobs supposedly created, that that will not be a strong report, but that comes out friday morning and that's the big one in the employment picture. of course, tomorrow, we've got

the latest in unemployment benefit claims as another indicator of the employment situation. what we've seen so far, not particularly strong by any means. and at ten o'clock this morning, about a half hour from now we get an indicator on the service sector of the economy, that could move the market, depending on whether it's sharply up or sharply down. we'll bring you to you sharp at 10. all right, the opening bell has almost stopped clanging, it has stopped and now we're trading and we're expecting pretty much a flat opening, maybe up ten, down ten and right around the baseline of 13-488. 13-5 call it right about that level and one stock you should really watch today. amazon. apple suppliers have started production on a smaller tablet and-- >> the stock market is higher,

and watching tech, amazon looking good so far. stuart: show me apple. i wouldn't expect a big reaction, because we knew that the smaller ipad was coming. and now we know it's in production? >> right, and this is how they find everything out. apple is up about 1/2 a percent, but the whole thing talked about on ipad mini, i don't know what it's called and nobody knows they rename the series, but the wall street journal alleging all things digital something is going on and they're working on a screen. 7.85 inches. 7.85 inches, that's meaningless to me, is that big, small, indifferent or what? >> it's about eight inches, smaller than the ipad, something like that. stuart: i predict sooner or later all of these gadgets will come together in just one. the smart phone will be melded with the tablet and the mini tablet and have one all purpose, all-- >> i don't think so, i don't think so. i mean, first of all, if you're a supplier or a tech company why would you do that? you've got to sell things,

right? there's just so much intense competition like the amazon kindle and fire have done well and why apple is rushing to build the ipad mini. stuart: what do i know about technology, i invested in microsoft. thank you, nicole. dow industrials up 12. a flat opening this wednesday morning, we are calling it another gaffe from vice-president biden. here is what he said yesterday at a campaign stop in north carolina. >> this is, man, this is deadly earnest. how they can justify, how they can justify raising be taxes on the middle class who's been buried for the last four years. stuart: you know, that sounds like a clear admission that the middle class buried these last four years. and the obama years, that would be. he later tried to walk the statement back, saying the middle class was buried by policies supported by mitt

romney and paul ryan. joining us now is congressman peter welsh, who joins us frequently on "varney & company." welcome back, good to see you. >> good to be here. i'm sure we're going to agree that the middle class has indeed been buried. income down about $4,000 in the the last four years for middle america. i say it's because of the pills of stimulus, a massive government spending, and heavy regulation simply has not produced a robust economy which would raise the middle glass. it's subdued the middle class. what's your explanation. >> well, i mean, that's the debate between governor romney and president obama. i mean, you're right. and that's the middle class is really struggling. something that's been true really for 30 years, when you look past what's happened in the middle class the last 30 years, it's basically treading water and it's gotten much tougher in the past four years, and this big debate between the two sides is whether it was, the bush policies, that preceded that

president obama that was a major contributing factor or is-- a the romney campaign is trying to argue with the stimulus measures and other steps that the obama administration took. >> well, congressman, what is going to get us out of it? do you think that of continued policy of raising taxes on the rich, that's the policy. a continued regulation, under obamacare, and financial reform, continued regulation, higher taxes, and do you think that will pro he dues growth in america's economy? >> no, not at the time. the basic debate here in my view is, is political dysfunction in e should be dealing with the debt and we should be dealing with growth and if you had a balanced approach to dealing with a long-term debt, that included making some reforms in our entitlement systems, and been bringing the pentagon under control and increasing that constantly and bringing some revenues, raising taxes on the high income folks won't make a

dent in the economy or their take home pay. those are the balanced approach is the way that a lot of us think it should be done. in the senate now, the gang of ten that's going to try to come one an approach that's balanced. stuart: what about you, congressman, would you accept a balanced approach which had tax reform within it? by tax reform, i mean, lower rates, fewer loopholes, so more revenue, and at the same time, a plan to reform entitlements long-term. that's a balanced approach, but it doesn't involve raising gas. and that's simpson bowls, would you accept that? >> yeah, well the simpson bowls does have some rate adjustments. the devil is in the details and the approach where everything is on the table and clean up the tax code and lower rates, that makes sense and we did that with bradley, and senator bill bradlee in 1986 and the tax code had all of these dysfunctional

and preferential provisions in it. what we have to do, i think, is have a reform of the tax code, clean it up and get some revenues that way, but what the romney campaign is trying to argue we saw this with paul ryan yesterday. he said it was revenue neutral. he thinks you can have this i think pie in the sky approach that will lower rates by cleaning up the code without it having a negative i am on the middle class families. there's devil in the details, but the fact that the gang of ten are talking together. five republicans, five democrats. that makes sense. politically we are the enemy, congress has got to start working together. stuart: i'm sorry, one thing, congressman, if you did get some kind of compromise, the stock market would really approve, i suspect. another point of agreement between us, i suggest, sir. thanks so much for-- >> no, i think that's right. stuart: i think so, too. always a pleasure, thank you for being with us, sir, much

appreciated. thank you. fox business has special coverage of tonight's debate it starts at 8 p.m. neil cavuto anchors. do not miss it, great stuff coming. in our next hour, mike reagan on what mitt romney has to do to impress tonight. does mitt romney go on the attack. he has before. we'll show you examples of mitt on the attack. join us 9:45 with michael reagan. and it shows the candidates neck and neck with president obama having a slight edge. right now obama 48 and mitt romney 45. so actually that lead has stretched out a little from a couple of days ago, whereas nbc wall street journal poll shows president obama's lead narrowing just a little. that's the rasmussen poll. new at ten top of the hour, you will not believe how many immigrants are getting government assistance like food stamps and welfare. only a small fraction of immigration applicants are denied. the judge is coming up on that one, 10 a.m. eastern.

all right. back to nicole, netflix shares, what leading the s&p 500? >> that's right. and first of all, netflix is volatile stock that we're talking about not only because everybody has it, but because of the moves on netflix. today the number one performer on s&p 500. now 4 1/2% on the heels of what we heard from research, a company blog and in the equity research blog they actually featured netflix as a top company in tech and in research and stuff, so, there you go. now jumping and leading the way, on a day where you have the markets, virtually flat. stuart: yeah, all right. you're right. it's a volatile stock. it came all the way down from 300 and change all the way down and now it bounces around 4 or 5% on any given day and that's why some-- >> right. >> all right. dow industrials down 2 as nicole said. we're dead flat. no change whatsoever and plus, this is pre-debate and maybe

that changes after the debate, i don't know, but we'll be watching. time is money, 30 seconds, here is what we're watching. and the stock for you today. we afternoon compare election to one back in 1980. and as late as october much that year, ronald reagan was trailing jimmy carter in the polls and the strong debate helped him win. and mike reagan is in the next hour. and problems with seats coming loose in flights, american airlines. tom sullivan is a pilot and our aviation expert. he's going to join us to talk about american airlines and rock legends gene simmons, he voted for obama in '08 and he told us he wants to take that vote back. question, is there anything president obama could say tonight that would change gene simmons' mind and make him vote for obama all over again? we will ask him the question. and we want to hear from you of course, e-mail us at varney@foxbusiness.com. there you have it. and all right, it's wednesday

morning and i have the seven early movers for you. family dollar posts higher quarterly profits and i see the stores opening everywhere and that stock is up. what's that, 2% up. nearly 3. data storage company, zero text, made less than expected and give a disappointing forecast and plummet down 12%. intermune, and health officials have approved its lung drug. a lung cancer drug, tell me. lung cancer drug and that stock is up nearly 7%. the superior energy company said profits will be lower than expected. don't like that. down 5%. the drug maker maker antares. and down. and metropcs. confirmed that it's in talk with t-mobile unit for possible merger and the stock has gone straight up recently. down a bit today. best buy's founder moving

forward on a possible 11 billion dollars buyout plan. that stock is up again. there you have it, 7 early movers, most up and they're mixed and the dow industrials are now down 9 points. michigan, the newest battle ground state for the unions. and next month whether or not to put union rights and power directly into the state constitution. coming up next we have a man for you who fought municipal unions and helped run the state of new york, richard ravage, he says new york's system and did it head to head with the unions. what does he think of the michigan union power grab? we will ask. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning,

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>> wednesday morning, i'll call a dead flat. check the price of oil. we're going back to $90 a barrel? yes, we are. we're down a buck 51. goodbye to higher gas prices in my opinion. last year, state worker unions in wisconsin, this year, michigan. the new battle ground for state's organized labor. should unions successfully put a measure on the michigan november battle that could give them enormous new power. item one, no new laws to limit unions rights if the constitutional amendment is approved and prevent michigan from ever becoming a right to work state and number three it could give unions the ability to mount endless, i mean, endless challenges to local governments. democrats and former lt. governor went head to head with the unions in part he did,

perhaps also went head to head as well, but he did save the new york city transit system in the '80s and joins us now on the expertise of running a big state. welcome to the program. >> good to be back. >> if you were trying it run and upper echelons of government in michigan, would you want this constitutional amendment, given the unions this kind of power? >> i'm not an expert at this, but to the extent i read about it, no, i would not. i to not believe in constitutional or in some cases statutory restraints on the ability of the political process to produce a result. we've had serious problems and fiscal problems in most states. i think-- >> you don't want to see governments, state governments go heads to head with the unions. you want more after concensus approach to solve these problems and i'm going to tell you, sir, you cannot get a concensual approach between these two sides. it's got to be head on.

>> well, head on is a term of art. there has to be negotiations. government has to disagree with unions, it should be -- they negotiate a lot. they have in the past, with respect to the kinds of benefits that are offered. on the other hand, i find equally objectionable any statutory effort to limit collective bargaining. i don't think in this day and age you can deprive 19 million people who work in the state and local governments, the right to bargain collectively for their wages in terms-- >> but they're not being denied, all collective bargaining rights. they can still be unionized. >> well, the efforts-- tried that in wisconsin and ohio. stuart: well, listen, all that's happened it is their rights to collective bargaining have been limited, not eliminated. that's the way it is. we have to do this because look, i'm not prepared to foot the bill. the system that we've got in place has driven us to

bankruptcy in many of the great states of these united states. we can't allow at that any longer and i don't want to pay. >> i don't blame you, but neither does the person who worked for government for 25 years and has a pension of only $25,000 a year want his or her pension reduced to pay for the fact that you don't pay enough taxes. stuart: if we don't reduce that pension or limit it in some way, you have to layoff younger workers and not hire them in the first place and services get cut to ribbons. >> you're absolutely right about that. but there are three sources of money to deal with money problems. the problem is we don't have enough money to meet the obligation. one is to take benefits away from people who enjoy the benefits of government, who work for it. stuart: lavish benefits. >> well. stuart: they are lavish. >> in some case they are lavish and in some cases-- but also, there are other

people, there are taxpayers. we have the lowest taxes of almost every civilized society in the entire world. to suggest that we get out of the mess we're in without taxes being part of the solution, i think, is-- >> i haven't got time to explode back at you. for the top 10% of the american taxpayers pay more, a greater share of the tax in america than any other industriallized company. don't tell me we're undertaxed. we're not, sir. richard ravage we'll come back and keep the debate going? >> i would love it. stuart: would you? you're a star and thanks for joining us, sir. >> thank you for having me. stuart: the gold report. where are we today? 17-something, aren't we? yeah, 1779. closer to 1800. aren't we? we're up three bucks today. a wisconsin tv anchors defends herself after a viewer calls her overweight. she takes a stand against weight

discrimination. you will see her response. elizabeth macdonald and doug schoen, they're next and they'll first respond to this. >> to the person who wrote me that letter, do you think i don't know that? that your cruel words are pointing out something that i don't see?

>> now we want to show you how jennifer livingston, a local news anchor in wisconsin responded to a nasty e-mail from a viewer, the viewer called her a bad role model for young girls because of her weight. >> the truth is, i am an overweight. you can call me fat and yes, even obese on a doctor's chart, but to the person who wrote me that letter, do you think i don't know that? that your cruel words are pointing out something that were i don't see? you don't know me. you are not a friend of mine. you are not a part of my family and you have admitted you don't watch the show so you know nothing about me, but what you see on the outside and i am much more than a number on a scale. >> yes, ma'am. liz? >> courage to stand up to bullies, your self-worth is not defined by a bully. this anonymous letter writer, coward is setting a bad example for his own children in a month that's anti-bullying month.

>> i fight with my wife every day, that woman couldn't have been a more eloquent spokesman for those of us that struggle. >> and what do you think, e-mail your comments on facebook as well. i fight with my weight every day. >> the percentage of immigrants on welfare, and those denied in the country for government assistance. two numbers that are very far apart. we have them for you.

stuart: new with 2:00, controversial new tapes showing been candid it obama saying katrina victims and not get the same treatment as other victims because of race. charles tries to respond. also, new it's:00, 36 percent and begins on some form of government assistance. but out of the millions of immigrants who applied, only a tiny fraction, less than 1 percent are denied entry on the basis that there would eventually need government assistance. down nine points. that's all we've got. right around 13450. and here is our company on wednesday morning. elizabeth macdonald by popular demand is back. former clinton adviser doug shown. probably by popular demand.

nicole petallides on the floor of the new york stock exchange. what is this ipo, the new company that helps protect you from identity theft? >> reporter: that's right. fraud protection. life clock is the name of the company. the ipo yesterday. the price $9. that was the low range and opened up to the downside. down over 3%. coming off of the lows. the lowest point was a dollars and $0.36. with the name of the company to mecca think everyone knows the of the company. this but some much money on marketing. stuart: okay. a number that just came in. we thought it would move the market, but it's not a particularly big movement. it's an indication of the service sector of the economy. the reading was 55. it is up from the 53 reading the month before. no impact on the market at all. we were down ten when the number came in. down eight as of now, so this is a non impact number.

june 2007, then candidate obama addressed a mostly black audience of ministers in the aftermath of katrina. here's what he said. >> when september 11th happened in new york city there waved. this is too serious a problem. we can't expect new york city to rebuild on its own. forget that dollar you have to put in. that was the right thing to do. when hurricane andrew struck in florida people said, look at this devastation. we don't expect to come up with your own money here. here's the money to rebuild. we won't wait for you to scratch together because you're part of the american family. what's happening down in new ones? where's your staff for that money? it makes no sense.

[applause] it tells me that somehow the people down in new orleans, they don't care about as much. stuart: now, then candid obama was referring to the stafford act which says local governments must match 10 percent of the federal government's emergency spending during disasters joining us by phone, charles payne. charles canady you think that take as injected the race card in to the selection? charles: the race card is always in the election. that has been stirred up for the last four years. at just want to talk about this for second. mistakes were made with this country a thing before and after. the black mayor may a lot of mistakes. the citizens were given a lot of time to get the heck out and they didn't listen. of course, the federal government had problems. racism exists. there's no doubt about it.

the deal with it. here's what's really the problem. particularly when it comes from the leader of the united states. we can't use it to cover up self-inflicted wounds. we can use it to cover up individual shortcomings. it can't be the reason for failure if you haven't tried. this will really gets me upset. when the president says they what he is talking about his government, more specifically what is talking about are white republicans who run the government. he's actually saying, it's not that they don't like you, these people hate you. those kind of speeches give credence to the theory in black america that the government blew up the levels -- levees. a lot of people believe that. but think about this for a moment. this is a president to i think his biggest problem, the biggest mistake that he is made in office from my point of view is that he keeps telling -- selling fear and excuses. it's heartbreaking because he could have changed the black

america so much for the better. he could come in and said, look me. i am the sample. no more excuses. our girls are higher, but we can clear them. here's the game plan. stuart: and sorry. i'm running at a time. thank you. charles: have a lot more to say. stuart: and sure you will. listen. is the race card because of that tape now back front and center in the election or will this just be passed over and forgotten? >> passed over and forgotten. we have a debate tonight. that's what people care about. this video, it is not his finest moment. >> that thing in, the press misreported this. the only reported ten minutes the prepared remarks. this is 36 minutes. join the president as a trapeze artist without his teleprompter. katrina get an estimated

$110 billion in federal aid. york city a fraction of that after 9/11. the question is, the very divisive remarks from the so-called you nitre in chief. stuart: peter barnes joins us in denver for a nice debate. any chance that this tape and the contents of the table, the debate? >> not very likely. the moderator can decide to ask it as one of his questions, but the topic tonight on the economy, health care, the role of government. the romney campaign is kind of distancing itself from this video this morning. it was not involved in the relief and sang in really wants to talk tonight about those other issues and the president's record. stuart: next thing, vice-president biden said this yesterday in a campaign stop in north carolina about burying the middle class. >> this is deadly. how they can justify, how they

can justify raising taxes on the middle-class the has been buried the last four years. stuart: all right. you're still with us. i have to believe that mitt romney will indeed run with that tonight. >> you bet. the romney campaign has already released reams of paper on this. it's going to be romney for president releases new web video could not say it better will be the theme. you can hear governor romney said at right end of the gate. guarantee it. stuart: will be watching you tonight. you're a professional politician . i should say that vice-president biden tried to walk back that, the little bit later in the day. he said the middle-class had been buried by policies supported by romney in ryan. can he walk it back successfully? was a just an awful gas? >> at think it's pretty bad.

the language is clear and unambiguous. governor romney can and i dare say should say and tell biden acknowledged that the middle-class was. because of your policies. was to you to that? stuart: it's an opening. >> a real opening. stuart: our next door. in numbers and government dependency. 36 percent are on at least one major welfare program. now another, only less than 1% of applications that come into the country or rejected on the grounds of the applicant might becoming dependent on the government. that is 7,000 out of 10 million rejected because they might become dependent. 36 percent have some dependency on the gunman. to the extraordinary numbers. let me jump in for a second before you even start.

you can't -- you can keep anybody you like out of the country. you can limit entry to any group like because the constitution allows us to do that, doesn't it? >> yes and no. the issue of limiting people's entry into the country because they're likely to become dependent on the government is perfectly lawful under federal law, but the law has never been ruled upon by the supreme court. in my opinion it probably would pass muster and would be constitutional, but the liberal answer to your question is you cannot keep people offer any reason. major gender or race or religion , but you certainly can't keep them out because they're going to train the assets of the taxpayers. let me tell you what the supreme court has ruled on which will not please. the supreme court has ruled that if the government makes benefits available to the public at large like public schools or welfare, as we understand it, and cannot

distinguish between lawful residents and illegal residents -- stuart: the supreme court said this. >> yes, and a famous case involving texas in 1976 in which the state of texas before george of the bush was governor attempted to exclude the children of illegal immigrants from public schools. the supreme court looked at the case and said, you can't do this. you can't keep them out of emergency rooms, welfare, whenever. benefits to make available to the public at large you cannot distinguish between americans and illegal immigrants. that means once here, once you get across the border your internal to the same benefits. stuart: food stamps, free phone from the obama administration, free medical care, free education, go to college. >> yes,. >> the american way. >> whether it is appropriate and not as a great topic for debate, but it's clear that is a lot today. it is probably clear that most folks, here are aware in some form of the existence of the law

stuart: yes, they are aware. i immigrated nearly 38 years ago. i was not aware of any such law. >> i can't imagine you came here for welfare. >> i didn't. stuart: have never taken anything from the government. it astonishes me. you think this is the american way. >> poor children in need health care and education, you don't say you don't give to our schools because of a child of illegal immigrants. stuart: food stamps. >> beating. eating. yes. stuart: all you have to do is get across that border legally or illegally. set foot, set foot right there. you can't be sent back. >> try and arbitrate this a little bit. this is based on children. the supreme court case is based on children. the state of texas was not allowed to punish children because of the misdeeds of their parents. now we can't arrest them, ask them when you got here and send them back on the grounds that they came here as children, it's

not they're fault. everybody clinton was brought here as a child. >> setting aside the children issue, doesn't the federal immigration law established standards that you cannot be seeking entrance into the united states and the welfare reliant. the standards that used now, there are only two welfare programs. >> the executive branch, how rigorously it wants to enforce those standards. in the obama administration those standards are not enforced very rigorously. 7,000 of 10 million turned down for that reason. in another administration the stand is might be enforced more rigorously. stuart: may not just to programs, it should be all 80. >> more people might be kept out >> that's what i'm saying. stuart: the president is buying the affiliation of certain groups of people who are sympathetic to illegal immigrants.

>> the policy is well supported. he takes political risk-75% of americans -- stuart: political risk? >> i was sick with my lawyer tonight. i to gilliam made my argument. >> you want me to really frustrates them? [laughter] >> your check is in the mel. >> thank you. stuart: running away over time. >> you're losing this one. stuart: here's another question that we have going into tonight's debate. will mitt romney go on the attack? will he have a moment like this? >> are you better off than you were four years ago? stuart: we run that a lot. that was ronald reagan in 1980. mike reagan joins us at 10:37 a.m. what does rodney need to do that

his dad did? we will ask. but mitt romney is the clear underdog. the mainstream media remind -- remains firmly in president obama's corner. our next guest being the underdog well that romney. this need to go on the attack? should deal on the attack like this? >> before defining your facts on that -- [talking over each other] >> you get 30 seconds. the way the rules work is i get 60 seconds and you get 30 seconds to respond. this is america.

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♪ stuart: all right. forty-five minutes into the trading session. the dow jones industrial average is dead flat. at the top of the hour we will report on the circuit sector of the economy. the is in index. the reading was 55. that means the sector is expanding. but nothing to the market. totally unchanged. best buy co-founder moving ahead with this plan to buy the company. he reportedly has the backing from private equity and the stock is up $17 for best buy. an ipo this morning, lifelock. and to protect your identity from theft. the stock price at nine. it opened at eight. here is an unusual and intended

consequence of the drought. people are stealing grass. reports of ranchers knocking down fences of a casting gran's. back to the 1880's. iraq in 90 seconds with a man who says mitt romney is the underdog.

stuart: 2400 people who collected unemployment in 2009 lived in households making more than a million dollars a year in income. the unemployment may have been paid to spouses or dependents of the millionaires, eliminating these payments to high earners

would save only a small model money each year. senator tom coburn says it is just one example of out of control government spending. many people like to refer the underdog in sports, but what about politics. is this of romney that we will see tonight? >> you phrase that before. while i was fighting to save the olympics you're fighting to save the bridge to nowhere. the idea that i'm anti-immigrant as ripples of. >> and not in the bedding business. >> in not only endorsed me, this is the guy who is really conservative. i get 60 seconds. and you get 302nd to respond. stuart: that was met on the attack. ed klein, author of the book the amateur. that will be president obama. with us today. good to see.

stuart: put aside the angry mitt romney, the attacking mitt romney. you say that he is the underdog tonight. you also say that makes him -- he has an advantage. >> absolutely. according to the laest polls 60 percent of americans think that obama is going to win this debate. that makes romney the underdog. he goes in with only 40 percent of the public thinking is going the when. expectations of lower. if it exceeds expectations was generally is the key to winning a debate he will come out the winner. he has to do better than most people think. a think you will, and that's why i think he has an advantage. stuart: we just saw him go on the attack in the republican primaries. he goes on the attack against various other competitors. do you think he looked good? >> i think he has to go on the attack against this president has up to now been almost

invulnerable to attack from the mainstream media, from the people who protect them, a tridymite use the second coming. i think he's a guy who is very thin-skinned. and if romney can get under his skin, if the contract that no trauma obama facade , make obama look as though he is put off balance, i think romney can do very well. >> study the problem that a fair romney is as aggressive as those could suggested that the likability factor could give worse. >> i think that is a problem. he has to do both at the same time. at the coffee can. it's a very thin line to walk. stuart: you can attack with a smile on your face. >> ronald reagan could do that. >> he is no ronald reagan.

stuart: that's a line i've heard before. >> sees no jack kennedy there. was he one of your gas? stuart: you can go after someone in a pleasant fashion and make it stick. >> i don't see him doing that. it's a real challenge. he's right to say that. >> what happens in the last 40 minutes of the debate when they are exhausted? >> that's a good question. i think you know this new video which i gather may not be brought out, not the type to bring of this video, something that i think that romney ought to consider. i know it's the third rail of american politics, talking about race, but this video is such a damning indictment of this president in terms of his race hitting what he claims to the been wanting to bring us all together. i wonder if from the could use this in some way.

stuart: and not sure of the of the stay up until the end of it. always a pleasure. thank you very much. now, i'm calling it the most discriminated against class of people, nothing to do with race or religion or ethnicity, but with how much people wait. one brave woman takes the stand. -- on that is next. ally bank. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank.

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>> the truth is i am overweight. you could call me fat and, yes, even obese on a doctor's chart. to the person who wrote me that letter, do you think i don't know that? your accrual words are pointing out something that i don't see. >> this anonymous letter writer is setting a bad example for his own children and the anti bullying month. >> i fight with my weight every day. that woman could have been a more eloquent spokesman for those of us the struggle. stuart: at that tape is self-explanatory. a news anchor receives a nasty letter about her weight. she response on the air. you heard our company's response here now is "my take." i think that 81 hands down. she exposed the viewers cruelty. she did it with grace and style. i think she won.

but she reveals something deeper. she exposed the contempt and prejudice that is so commonly leveled against overweight people in our society today. it is my opinion that the principal source of hurt and prejudice is not race or ethnicity but wait. if you're not thin, we tend to think you lack control would you like impression -- intelligence. you let yourself go. can you imagine the agony that so many young women go through when they can't conform to the shape fashion of the day? many of you must have felt the ugly but of exclusion. so the young man. all women of any age. your fat, you're out. there must be something wrong with you. i have no solution, but that news anchor surely made us all look inward. at brave woman. before copd...

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[ male announcer ] if you can't afford your medication, you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank. ♪ stuart: oil inventory. they have had a big affect on the market. we are talking about the amount of oil in storage. it was down. the price of oil is down two dollars a barrel and we are below $290 a barrel.

nicole: the ipo price is nine dollars. below the initial price. they were taking 9.5211.50. i wanted to tell you, they have 2.3 million subscribers. speech. stuart: here is another cash flow story. family dollar. i use it all the time. the prize. the prize. i like it. it has terrific value. where is the stock? nicole: it is number two on the s&p 500. they didn't keep their net on the rise. i was looking quarter to date. it is the best of the bunch. stuart: everyone on the set is laughing at me because i admit

to shopping at family dollar. nicole: what are your favorite stores? stuart: target. i preferred target to walmart. i brownbag my lunch every single day. nicole: what is in the bag today? stuart: toasted whole wheat bread, smoked salmon, grapefruit, nonfat yogurt. are we done? can i move on? >> i want to upgrade your lunch, stuart. stuart: i have to move on. joining the company now from chicago is my colleague, scott. we are talking about something different today. >> a little bit. stuart: you own a farm. you wear a cow jacket every day. i have to believe that you farm cattle.

>> we currently have beef cattle. my father was a big dairy cattle. there was a time in my youth that we milked 200 cattle three times a day. stuart: you know about getting up early in the morning. the reason we are telling our viewers, our own jeff flock is visiting your farm tomorrow. we are putting you and jeff on the air on this program. >> yes, we are. maybe we can put jeff to work and get some of that city slicker out of him. there are no shortcuts. it is hard work. stuart: i know that. i am a tree farmer. you and i can get together. i have, by the way, milked a few cows in my time. i have. >> that is good. i probably personally have planted over a thousand trees over the last few years. stuart: we must get together,

scott shelby. we will be on the air together tomorrow with jeff flock. thank you very much, indeed. we will see you tomorrow. mitt romney is trailing in most polls. many people think you need to do something tonight in the debate to change the course of the campaign. should he go on the attack? can he go on the attack? is he any good at it? >> while i was fighting to say the olympics -- [ talking over each other ] >> the idea that i am anti-immigrant is repulsive. >> i am not in the wedding business. >> you said this is a guy who is really conservative and we can trust him. let's not forget you said that. >> i get 60 seconds. [ talking over each other ] stuart: those were some of the better lines from the republican debate starring mitt romney.

joining us now is mike reagan of reagan.com. use saw that, mike, do you think that was mitt romney being good on the attack? >> good to a point. he had to attack the governor of texas at that point in time. it could be a different debate tonight. you have to be forceful. you have to be direct. you also have to be respectful of the fact it is the president of the united states of america. mitt romney needs to take the attack to him in such a way that the president is on the defense. the last couple of weeks, the president has had mitt romney on the defensive. mitt romney does not have to defend anything. the president should be defending everything. stuart: i want to roll a soundbite. i know you have seen it a thousand times. this is back in the 1980s. this is your dad. this is how you go on the attack nicely. >> i will not make age an issue

of this campaign. i will not exploit for political purposes my opponent's youth and inexperience. [laughter] stuart: it makes me laugh. still makes you laugh. too often we are looking for the next ronald ragan. we are looking for another ronald ragan. a guy that can deliver the same kind of line in the same kind of way. >> we are looking for leadership. america tonight needs to see a leader. the leader we supposedly had took off for vegas while we had people that and then got the. that was not leadership. mitt romney needs to show the

country that he can lead. people need to feel comfortable being able to vote for mitt romney and leadership. stuart: we have the president going to las vegas right after the murder of our ambassador in and out the. today we have a tape that surfaced the president and candidate obama four years ago. >> i think the 2007 speech will not be that important. i think what is important is what the president did when our ambassador, seals and one other were laying dead in benghazi and he had all this information. he tried to blame it on a stupid movie trailer. he can use that if they can get to that. let's talk about the economy. i just tweeted last night, california we are not that are

often we were a week ago because a week ago we were only paying $4.15 for gasoline, as of yesterday, it is $4.20 for gasoline. most people are not better off. stuart: i hate to spring this on you. i have 30 seconds left. i want you to tell me what will be the headline in the "new york times" tomorrow morning? >> obama wins. stuart: i agree with that. >> if romney wins it will be a split decision according to the mainstream media. >> absolutely correct. that is why i say mitt romney needs to buy airtime and go to the public because the mainstream media will never cover him. stuart: you have an advantage. this debate kicks off at 6:00 o'clock your time. you can stay up late to watch it all the way through.

the folks on the east coast, we have a hard time. i will let you watch it for me. how is that? >> [laughter] i am sure you will be watching it, as i will. stuart: do not miss fox business coverage tonight with neil cavuto. it starts at 8:00 o'clock eastern time. rock 'n roll star gene simmons voted for president obama. today he says he will vote for mitt romney. gene simmons is next. ♪ [ male announcer ] what if you had thermal night-vision goggles,

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♪ stuart: there is plenty of action and toilet this morning. that is where the action is, in fact. we have a job down in the amount of oil in storage. $2.61 a barrel. back to $89. does that mean gas prices will keep falling? may be. stuck around 3.78 for regular. eighty-nine dollar oil may bring that gas price down. down jones industrial average. no change to the market at the top of the hour. family dollar up this morning. strong sales, especially, of food. it helps it stores compete with its rivals. check out monsanto.

posting a loss. it is selling less corn. back in 90 seconds with rock legend gene simmons. ♪ time understanding my accent. so to make sure people get every word of the geico savings message i've been practicing how to talk like a true chicagoan. switching to geico could save you hundreds of dollars on car insurance... da bears. haha... you people sure do talk funny. geico®. fifteen minutes could save you fifteen percent or more on car insurance. why let ectile dysfunction get in your way? talk to your doctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing.

this is the age of taking action. viagra. talk to your doctor. enough already. c'mon guys. next question. hello! what's your favorite color? what's my favorite color? yes. purple. what's your favorite animal? sea turtle. what's your bedtime? do you believe in space aliens? ...i love puppies. hash browns or home fries? home fries. do you like my dress? why can't you guys ask good questions like this? [ morgan ] for a chance to interview an nfl player... join visa nfl fan offers and make your season epic. ♪ stuart: in 2008, rock 'n roll start legend gene simmons voted for president obama. today he says he will vote for mitt romney. he joins us today from los angeles. is there anything obama could say that could change your mind?

>> i just want to correct something that has been out in the press for a wild. i am attracted to governor mitt romney, his experience, his resume is very impressive. the president i voted for, barack obama, has a very very small resume. it lacks or lack when he ran against john mccain. foreign policy experience. did not know anybody. never ran a company. i think this will happen across the country and most polls. people will vote their conscience right before they took off. they will come in with preconceived notions. i was going to vote with john mccain. long experience. knows how washington works. a war hero. understand the economy. john mccain hands down. when i went into the voting booth, for some reason, and i

cannot explain it, i voted for president barack obama. i can tell you, i am not happy, but i believe, most people, my estimation, most people in my estimation who voted for our president are unhappy. though polls tell you one thing and on the day when people will vote their conscience, something will happen. when people watch the presidential debates tonight, they will be listening with their eyes. they will not understand a lot of the words going by because they are not qualified to understand it. they will just say, i like what that person said. i like how they said it. stuart: i believe that you have been turned off president obama by his relationship with israel. i think that is a big issue. >> that is foolish. you do not have to be a political pundit or a world-class expert in foreign

policy. if israel is not our best friend in the middle east, who is? syria? stuart: in 2008 president obama got 78% of the jewish vote. what percentage do you think you will get this time? >> foolishly, i still think it will be predominately for that. jews vote democratic. they forget there was a president whose name was lincoln who did some pretty nice things. look, the division and diversion of other big words like gymnasium that separates the two parties, if i were to vote for one person today, i would vote for barack romney. that is who i would vote for. in certain ways, our president has charisma. he looks presidential. governor romney, even though he has the experience, resume, he does not really have, in my

estimation, the people skills and ability to expand. stuart: i have to get in. you have a rock oktoberfest. your business line is the restaurant business. what are you doing with that? >> we are taking over in los angeles the espn center, which used to be the 10,000 square feet -- wolfgang puck and the fabulous gene simmons are going to be hosting an event on october 15. all the proceeds will go to wounded warriors. wolfgang and i will post it. rock stars, even mr. varney may be there. the entire media will be there. we hope people come down and contribute to wounded warriors. stuart: i am flattered you would suggest such a great thing.

all kinds of problems at american airlines. including rows of seats coming loose during flights. would you fly american? tom sullivan is a pilot. we will ask him about that after the break. ♪ those surprising little things she does still make you te notice. there are a million reasons why. but your erectile dysfunction that could be a question of blood flow. cialis for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved

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♪ stuart: boy did we receive a lot

of responses from you about the woman and the man who wrote her an e-mail about her weight. what a shallow society we have become. live and let live. her weight is none of our business. we all must find our ways to endure and i say, you go girl. catherine has a different take. she says, to me, it seems her behavior is as unbecoming as the viewer to rotate in. she may have felt bullied, but she used her fully pulpit to get back at him. lots of opinions on the facebook page. join in, please. american airline seats coming loose. delays, cancellations, the airlines say it is not because of the problems with the unions. tom sullivan joins us now.

welcome. >> thank you. stuart: these loose seats, happened a couple of times, is not a result of employee actions. you say i say you cannot rule that out. it does not pass the smell test. no other airline is having these problems. all of this has happened within the last two weeks. they have a labor and judgment were going on. the airport transport workers are met they have outsourced some of the maintenance which is the biggest aircraft maintenance company in the world. they do not have their seats coming out for other companies. this smells. it does not pass the smell test. stuart: event airline is at war with its employees, how long can it stay in business?

it will fly an airline where the seats come loose, the pilots call in sick, flights are canceled, flights are delayed. >> that airline industry has way too much labor management anger. there are two airline headquarters in dallas. one is american and one is southwest. it is a matter to me of looking at the management of southwest. what are they able to achieve such harmonious relationship with their employees and american cannot. >> is it that issue of profiteering at southwest? >> i believe you are right. stuart: i think they are all becoming a bus service. they have to adjust to that. maybe southwest has adjusted faster than other people. tom sullivan, thank you. the highlight reel is coming up next. ♪

stuart: here it is the highlight reel. roll it please. >> forget that dollar you got to

put in. -- $10. >> is the race card because of that tape now back? >> where's your dollar? [inaudible]. >> we can't use it to cover up. >> tells me that somehow the people down in new orleans they don't care about as much. >> keeps selling excuses. >> nobody on this program today suggests that the obama race tape if i can call it that would be a factor in the election and certainly not in the debate tonight. i think that's where we stand. >> i think so too. stuart: it won't come up in the election? >> it was not a fortunate speech, not consistent, but not a problem. stuart: doug schoen, elizabeth macdonald. thank you very much indeed. here are dagen and connell. connell: all right stuart. dagen: tha